Sun Life logo on a building
Jonathan Got

Sun Life Financial Inc. reported net income of $875 million in its first quarter, a 2% decline from the same quarter last year.

The insurer said profits were affected by its U.S. health division, including from reassessments following changed Medicaid determinations primarily reflecting higher morbidity claims. The U.S. division saw a 20% drop in underlying net income to US$141 million.

The Canadian division was down about 2% to a net income of $310 million, as increased death payouts offset gains in business growth.

Sun Life had $1.47 trillion in assets under management (AUM) on March 31, up from $1.4 trillion on December 31. The increase was mainly driven by favourable market movements on the value of segregated, retail, institutional and managed funds as well as positive foreign exchange effects.

However, the insurer also experienced a net outflow of $10.5 billion from segregated funds and third-party AUM.

Wealth sales and asset management gross flows in Canada were $4.08 billion for the quarter, up 32% from last year. This increase was driven by higher mutual fund sales in individual wealth and higher defined-benefit and defined-contribution sales in group retirement services.

Individual protection sales were $130 million, down from $136 million from the first quarter of 2023, reflecting lower participating whole life insurance sales.

The insurer’s reported net income was $818 million, up 1% from last year, while it raised its dividend by 4%.